Up by 23,300%? How FTX founder’s sentence sparked memecoin frenzy

  • Former FTX CEO Sam Bankman-Fried was sentenced to 25 years in prison for fraud.
  • Memecoins like Sam Baseman Fraud reflect the trend of topical-themed tokens.

In a significant development, former FTX CEO Sam Bankman-Fried has been sentenced to 25 years in prison for fraud, marking a historic moment for the market. Amidst this turmoil, a memecoin named Sam Baseman Fraud, with the ticker FTX, was launched on the Coinbase layer-2 network Base just hours before the sentencing.

Additionally, data from DexScreener noted that, in just seven hours, the FTX memecoin surged over 23,300%, hitting a $1.5 million peak market cap on the 28th of March. However, typical of many memecoins, it swiftly dropped by over 85% within three hours. 

Remarking on the same, @CryptoPatel a technical analyst, highlighted, 

“Following the misuse of billions, both FTX and Alameda Research crumbled, marking one of the most dramatic collapses in crypto history.”

The emergence of SBF memecoin

Shortly after the sentencing, another SBF-themed memecoin, Som Bonkmon Fraud, emerged on Solana [SOL]. It surged to a $20 million market cap, up 18,000% from its $30,000 launch value, but then plummeted by over 95%.

Currently trading around $0.0008, slightly above the coin’s initial listing price.

Mocking on the scenario, @CryptoRand noted, 

“Facts when #SBF is released in 2049:
– $BTC mining reward will be 0,04882812
– He would have missed at least another 6 Bull markets
– The #BTC whitepaper would be 40 years old
– SBF would have eaten 54,750 cucumbers in jail
– $ETH gas fees will still be $13725 per TX”

Solana’s memecoin surge 

The rise of Bankman-Fried themed memecoins mirrors the trend of topical memecoins inspired by crypto and political figures, like Boden and Tremp, tapping into the US election hype.

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The trend gained momentum with Solana’s Dog Wif Hat (WIF), soaring from $50,000 to $3.5 billion in four months.

All this has resulted in Solana’s memecoin surge, driven by its low fees and high throughput. This resulted in its Total Value Locked (TVL) exceeding $4.5 billion, rivaling Ethereum’s meme coin dominance. 

In short, memecoins like Bankman-Fried-themed tokens thrive on hype rather than real value. Therefore, as the memecoin craze persists, investors must proceed with caution and evaluate fundamentals before diving into these speculative assets.

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